A: In the March 2005 issue of this newsletter, we reported that the U.S. government is withholding documents sought by TSCL in 2004 under the Freedom of Information Act. The documents pertain to the highly controversial Social Security totalization agreement with Mexico. The Social Security Administration claims that they are exempt from mandatory disclosure.

In May 2005 TSCL submitted a second request to the Social Security Administration under the Freedom of Information Act seeking release of information concerning the final version of the agreement with Mexico, the details of which have yet to be made public. TSCL received an acknowledgement from the Social Security Administration that said "we need additional time to prepare our response." To date TSCL has received no requested documents or further response from the Social Security Administration.

Since the late 1970's the United States has entered totalization agreements that coordinate the U.S. Social Security program with comparable programs of other countries. The agreements allow employers and persons who work outside of their homeland to pay only one set of Social Security taxes. The agreements allow workers to "total" the amount of time worked in both countries in order to be eligible for Social Security. The U.S. currently has such treaties with 20 other nations with economies similar to ours.

In 2003 the Government Accountability Office (GAO) said the costs of a totalization agreement with Mexico are "highly uncertain" however, because our government failed to include in its estimates the number of illegal immigrant workers who potentially may become eligible for benefits under such an agreement. Under current law, immigrants earn work credits for Social Security even though they may be working in this country illegally.

Fake Social Security Numbers, "Green Cards" Easy to Get

In order for a person to legally work in the United States, he or she must first have a valid Social Securit number. Millions of immigrants, however, can and do begin work in this country without one. According to the Government Accountability Office (GAO) the government has been lax in enforcing penalties for knowingly employing illegal workers.

Says the GAO, "To comply with regulations and avoid a penalty, employers must request each employee to provide a Social Security number, use that number to prepare the employee's wage statement, and if notified by the IRS that the Social Security number is incorrect, make up to two annual solicitations for a correct Social Security number from the employee. If the employer takes these steps and still files a wage statement with an inaccurate Social Security number that was provided by the employee, then in most cases, the employer qualifies for the ‘reasonable cause' waiver and no penalty will be assessed. Employers are not responsible for verifying the accuracy of Social Security numbers."

Fake Social Security numbers are all too easy to come by. The New York Times recently reported that illegals can unlawfully buy a fake green card and Social Security number for about $100 to $200. Renting a valid Social Security number that belongs to a friend or family member who has returned to Mexico, is also blossoming. According to The New York Times, the transaction goes virtually undetected by U.S. authorities.

Immigrants can lose their green card if they stay outside of the country for too long, so renting their Social Security number and green card can be useful. The New York Times reported that some Mexicans who work in seasonal jobs like construction or lawn care, take $4,000 or $5,000 in unemployment during the off seasons and simply rent their card to someone else when they don't need it. The deal generates cash.

Most illegal immigrants earn so little, they are due an income tax refund at the end of the year. The illegal immigrant "working the number" will pay the real owner by sharing the tax refund. The real owner of the card also knows that the added earnings will boost Social Security benefits down the line.

TSCL has been fighting the ratification of the totalization agreement with Mexico because of the enormous drain it would put on the Social Security Trust Funds. The public is already being told that the Trust Funds are in such dire shape that benefits must be cut.

The League also believes such an agreement would provide an incentive for even more illegal immigration. TSCL endorses two resolutions that would formally reject the Social Security pact with Mexico, H. Con. Res. 50, introduced by Representative Virgil Goode, Jr. (VA), and H. Res. 20, introduced by Representative J. D. Hayworth (AZ). A formal resolution of disapproval is the only way that Congress can stop the U.S. Mexico Social Security Agreement once the President sends it to Congress.

Sources: "Social Security: Proposed Totalization Agreement With Mexico Presents Unique Challenges," Statement of Barbara D. Bovbjerg, GAO, September 11, 2003, GAO-03-1035T.  "IRS Needs to Consider Options For Revising Regulations to Increase Accuracy of Social Security Numbers," The Government Accountability Office, August 2004, GAO-04-712. "Some Immigrants Are Offering Social Security Numbers For Rent," Eduardo Porter, The New York Times, June 7, 2005.

September 2005